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Subsequent Events
9 Months Ended
Sep. 30, 2014
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events
On October 14, 2014, the Company and Meredith Corporation entered into the Magazine, Content Creation and Licensing Agreement (the “MS Living Agreement”).
Pursuant to the MS Living Agreement, Meredith will assume responsibility for advertisement sales, circulation and production in the United States and Canada of the Martha Stewart Living magazine and host, operate, maintain, and provide advertisement sales and related functions for www.marthastewart.com, www.marthastewartweddings.com and MSLO’s related digital assets, including its vast video library. The Company will continue to create and provide all editorial content for Martha Stewart Living and www.marthastewart.com. Pursuant to the MS Living Agreement: (1) Meredith will pay the Company for content for Martha Stewart Living; (2) the Company will share in digital advertising revenues, including video advertising revenues, received by Meredith; and (3) Meredith will pay the Company a share of the operating profit from producing and distributing Martha Stewart Living.
Concurrently with the MS Living Agreement, the parties also entered into the Magazine Publishing Agreement (the “MS Weddings Agreement”), under which Meredith will assume responsibility for advertisement sales, circulation and production in the United States and Canada of the Martha Stewart Weddings magazine and related special publications, including Martha Stewart’s Real Weddings. The MS Weddings Agreement provides that Meredith will provide such services on a cost-plus basis.
The MS Living Agreement and the MS Weddings Agreement are each effective November 1, 2014 and Meredith will begin delivering editions starting with the February 2015 issue of Martha Stewart Living and the Winter 2015 issue of Martha Stewart Weddings.
During the three months ending December 31, 2014, the Company expects to incur restructuring charges, principally for severance, of approximately $2.0 million to $3.0 million.